Core Viewpoint - The Hong Kong new consumption sector has experienced a significant decline after a period of rapid growth, with major stocks like Pop Mart and others seeing substantial drops in their market values [3][4][5]. Market Performance - As of October 23, 2023, Pop Mart's stock price fell by 9.36% to HKD 232.4, with a total market capitalization of HKD 312.1 billion. Other notable stocks like Gu Ming and Mixue Group also saw declines of over 6% and 4%, respectively [3][5]. - Major stocks in the sector have dropped more than 20% from their yearly highs, with the three leading companies losing over HKD 280 billion in market value [3][7]. Financial Results - Despite Pop Mart reporting a remarkable year-on-year revenue growth of 245%-250% for Q3, the stock continued to decline, indicating a disconnect between strong financial performance and market sentiment [8][13]. Capital Flow - There has been a noticeable shift in capital flow, with local and international institutional investors withdrawing funds, while southbound capital continues to flow in [4][10][11]. - The analysis of capital flow indicates a divergence among institutional investors regarding the future of the new consumption sector, with some believing it is a temporary correction while others see it as a narrative ending [4][10]. Market Concerns - Concerns about the sustainability of growth are prevalent, particularly for companies like Pop Mart, where analysts suggest that revenue growth may peak this year [13]. - The market is reassessing the business models of new consumption companies, with specific concerns about the alignment of operational practices and high-end positioning, as seen with Lao Pu Gold [13][14]. Future Outlook - There is a split in market opinions regarding the future of the new consumption sector, with some analysts suggesting a potential recovery supported by macroeconomic factors, while others warn of deteriorating supply-demand dynamics and increased competition [15].